4. B 22 tr 3 [COMMITTEE PRINT] SECTION-BY-SECTION SUMMARY OF AREA REDEVELOPMENT ACT AMENDMENTS OF 1963 S. 1163 A BILL TO AMEND CERTAIN PROVISIONS OF THE Printed for the use of the Committee on Banking and Currency COMMITTEE ON BANKING AND CURRENCY A. WILLIS ROBERTSON, Virginia, Chairman JOHN SPARKMAN, Alabama PAUL H. DOUGLAS, Illinois WILLIAM PROXMIRE, Wisconsin HARRISON A. WILLIAMS, JR., New Jersey THOMAS J. MCINTYRE, New Hampshire WALLACE F. BENNETT, Utah MATTHEW HALE, Chief of Staff SECTION-BY-SECTION SUMMARY OF THE AREA REDEVELOPMENT ACT AMENDMENTS OF 1963 Short title The first section of the bill provides that it may be cited by its short title the Area Redevelopment Act Amendments of 1963. Section 2. Findings and purposes This section states that experience has shown that certain modifications and increased authorizations are needed to enable the Area Redevelopment Act to achieve more fully the purpose of assisting areas distressed by substantial and persistent unemployment and underemployment. Section 3. Loans and participations to private firms Section 3 (a) of the bill would increase the authorization for Federal loans and participations to private firms in redevelopment areas. Under existing law, two loan funds of $100 million each are established, one for urban redevelopment areas designated under section 5(a) of the Area Redevelopment Act, and the second for rural redevelopment areas designated under section 5(b) of the act. The bill would increase the maximum amount outstanding at any one time under each of these funds to $250 million. Section 3(b) would facilitate the financing of these projects by amending the repayment requirements for that part of the financing which must be met by a local public or semipublic body. Existing law requires that at least 10 percent of the aggregate cost of an industrial or commercial project for which an ARA loan is sought must be supplied by a public or semipublic body as equity capital or as a subordinated loan with delayed repayment. It further requires that this 10 percent cannot be repaid until after the ARA loan is retired. This amendment would authorize this 10 percent to be repaid during the same time but at no faster rate than the ARA loan. Section 4. Loans for public facilities This section would increase from $100 million to $150 million the amount of loans which may be outstanding at any one time under the act to finance local public facilities. Section 5. Grants for public facilities This section would increase from $75 million to $175 million the amount which may be appropriated for Federal grants for local public facilities. Section 6. Technical assistance This section would increase the amounts authorized to be appropriated annually for technical assistance from $4.5 million to $10 million. In addition, it would make explicit the discretionary authority of the Secretary of Commerce to require repayment of technical assistance in appropriate cases. |